Tag Archives: Geoff Jones

GR Engineering locks in 1 Mt/y processing plant build for Bellevue Gold

GR Engineering Services Limited, following a preliminary works agreement signed in May, has entered into a contract with Golden Spur Resources Pty Ltd, a wholly-owned subsidiary of Bellevue Gold Limited for the engineering, procurement and construction (EPC) works in relation to the 1 Mt/y gold processing plant and associated infrastructure for the Bellevue gold project in Western Australia.

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.

The contract sum for the EPC contract is A$87.8 million ($60.7 million).

Bellevue Gold said the award of the contract was particularly important because it further insulates Bellevue against rising costs.

“The EPC contract is the last of the large capital expenditure items on the pathway to production, meaning 90% of the project’s pre-production expenditure is locked in either via contracts or tenders (79% under contract and 11% under advanced tender),” it said.

As part of the preliminary works agreement, GR Engineering had already commenced work on the project. This involved design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into the now-signed EPC contract.

Geoff Jones, GR Engineering Managing Director, said: “GR Engineering is pleased to continue its involvement on this exciting gold project. Our clients are increasingly seeking certainty and a track record of performance and GR Engineering has been able to demonstrate this to Bellevue, including by reference to its strong track record of successful project outcomes in the Western Australian gold sector.”

Bellevue said the design criteria incorporates sufficient headroom to support an increase in throughput to 1.2 Mt/y with no additional capital required across the entire plant.

“Further expansions beyond 1.2 Mt per annum can be achieved for a low level of additional capital,” it added.

Bellevue Gold is looking to become one of lowest emitting gold mines in Australia, with a forecasted greenhouse gas intensity of 0.202 t CO2e/oz, with planned integration of renewable energy.

The design for the processing plant also follows this philosophy, with the design of the crushing circuit optimised to maximise renewable energy usage by incorporating higher throughput rates, enabling its use to rise and fall in line the availability of renewable energy while not restricting overall throughput, the company said.

“By optimising the power demand curve to better align with key daytime and night-time energy peaks and troughs in the generation of power from renewable energy sources, it will create the optionality for the crushing circuit to maximise crushing in peak renewable energy generation periods,” Bellevue said. “This will have the potential to offset more than 1 MW in demand on thermal power generation.”

Bellevue Gold tasks GR Engineering with process plant build

Bellevue Gold Limited has awarded GR Engineering Services Limited engineering, procurement and construction (EPC) work related to the 1 Mt/y gold processing plant and associated infrastructure for its namesake project in Western Australia.

GR Engineering will immediately commence design engineering services and ordering of long lead and design critical path equipment including the ball mill, crushing equipment, screens, agitators, leach and tailings thickeners, prior to entering into a formal EPC contract.

Geoff Jones, Managing Director, said: “GR Engineering is pleased to be working with the Bellevue team on this exciting gold project. This project further enhances GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Bellevue Managing Director, Steve Parsons, said GR Engineering knew the project well from its work during the study phase.

“Commencing manufacturing of these long-lead critical components of our 1 Mt/y processing plant de-risks the construction schedule and puts Bellevue on the pathway to first gold in the second half of 2023.

“The appetite among leading contractors and suppliers to be involved with our project speaks volumes about its strong future.”

Bellevue is forecasting production of 200,000 oz/y during years one to five at an all-in sustaining cost of A$922/oz ($653/oz) at its operation.

GR Engineering to build Thunderbird mineral sands processing plant

GR Engineering Services has been awarded an engineering, procurement and construction (EPC) contract with Thunderbird Operations Pty Ltd (TOPL) for a mineral processing plant and associated facilities for the Thunderbird mineral sands project in Western Australia.

TOPL is a wholly owned subsidiary of Kimberley Minerals Sands Pty Limited (KMS), which is 50% owned by Sheffield Resources Limited (ASX: SFX) (Sheffield) and 50% owned by YGH Australia Investment Pty Limited. The contract sum is A$179.5 million ($134.3 million).

GR Engineering will commence limited work under the contract until being issued with a full notice to proceed, ahead of a final investment decision being made by KMS to pursue the development of the project, it said. The final investment decision is expected in mid-2022 with project delivery scheduled to occur over an approximate 18-month period.

In May 2021, GR Engineering restarted early engineering and design works for the project and has been progressing critical path design and procurement activities. The company has a long-standing relationship with the project since 2017.

Geoff Jones, Managing Director, said: “We are extremely pleased to have been engaged to perform a key role in the development of the world-class Thunderbird mineral sands project. GR Engineering has been associated with the project over a number of years and it is exciting to see this project progress to the next stage of development.”

In a bankable feasibility study released on the same day as this announcement, Sheffield Resources outlined a A$484 million Stage 1 project using a Single Mining Unit Plant that underpinned a 10.4 Mt/y mining operation and a processing plant design feed rate of 170 t/h. The Stage 2 project saw a duplication in year five of Stage 1 mining underpinning a 20.8 Mt/y mining operation and an increase in the processing plant feed rate to 290 t/h.

GR Engineering’s Mipac to complete Stage 2 work on Kyshtym copper electrolytic plant in Russia

GR Engineering Services’ wholly owned subsidiary, Mipac Pty Ltd, has received engineering and procurement orders from MESCO Inc to complete Stage 2 work on the Kyshtym copper electrolytic plant in the Chelyabinsk region of the Russian Federation.

As part of the work, Mipac will supply in-house developed specialised monitoring technology and software solutions.

MESCO is listed on the Tokyo Stock Exchange and the Mipac team has previously worked with MESCO on the project. All of the work, which will start immediately, will be performed remotely with personnel only travelling to site for commissioning and start-up, GR Engineering said.

As part of a 2017-2018 modernisation project, the Kyshtym plant’s production capacity increased to 140,000 t/y of copper cathodes and 140,000 t/y of copper rods, Russian Copper Company says.

This is a key contract award for the Mipac team and will contribute approximately 35% of Mipac’s forecast revenue for financial year 2022, it added.

GR Engineering’s Managing Director, Geoff Jones, said: “Mipac is a highly regarded controls systems and operations technology engineer and its business has been successfully integrated across the wider GR Engineering group post acquisition. We are pleased that Mipac will work collaboratively with MESCO on another important project.”

GR Engineering acquired Mipac, a leading global provider of control systems engineering, automation and technology services, earlier this year.

GR Engineering to build paste plant at Renison tin operations

GR Engineering Services Ltd says it has been awarded additional work by Bluestone Mines Tasmania Pty Ltd with a combined value of A$31.7 million ($23.6 million).

This work, to be performed by GR Engineering’s team in Queensland and Tasmania, Australia, includes an engineering, procurement and construction (EPC) contract involving the design, supply installation and commissioning of a new paste backfill plant and associated infrastructure at its Renison tin operations.

Early front-end engineering design work on the paste plant has been completed, GR Engineering said. The value of this project is A$23.9 million.

The Environment Protection Authority signed off on this paste plant build in August. It will redirect tailings from the existing tin process plant for dewatering and processing into filter cake, with the filter cake to then be stored and combined with cement in a batch process before being piped underground to stabilise mined out areas of the underground operations.

In addition, the company has been awarded an EPC contract for the HV Power Upgrade Project that includes the design, supply and installation of new transforms and HV switchgear for Bluestone’s existing main switchyard. The HV Upgrade Project has commenced, and the value of this work is A$7.8 million, the contractor said.

Geoff Jones, Managing Director, said: “GR Engineering has been pleased to support Bluestone Mines on multiple projects over the last two years and has developed a strong working relationship with management and the on-site team. We look forward to continuing our work with Bluestone Mines using GR Engineering’s team in Queensland and Tasmania.”

The Renison tin operations are owned 50:50 by Yunnan Tin Group and Metals X through the Bluestone Mines Tasmania Pty Ltd joint venture.

GR Engineering to refurb and upgrade Cosmos nickel concentrator

GR Engineering Services Ltd is set to carry out an upgrade of the existing nickel concentrator at the Cosmos Nickel Operations, owned by Western Areas Ltd, after signing an engineering, procurement and construction (EPC) contract with one of the miner’s subsidiaries.

The project is 30 km north of Leinster in Western Australia.

Western Areas says it has plans to refurbish and expand the concentrator to achieve 900,000 t/y throughput. In its most recent quarterly report, it said long lead items for the project had been identified with ordering taking place in the December quarter. Most of the plant refurbishment and upgrade is due to commence in the March quarter of 2022.

The contract sum is A$48 million ($36 million) and GR Engineering has commenced work immediately, the contractor said.

Geoff Jones, Managing Director, said: “GR Engineering has a long history of working with the Western Areas management team and have a strong track record of delivering projects for Western Areas on time and on budget. GR Engineering is excited to work with Western Areas on another important project and we are looking forward to delivering safe and successful outcomes for the project.”

GR Engineering captures A$90 million of EPC contracts from Galena Mining

GR Engineering Services has been given the notice to proceed with the engineering, procurement and construction (EPC) of a 1.2 Mt/y lead sulphide flotation processing plant at Galena Mining Limited’s majority-owned Abra base metals project in Western Australia.

The contract, which follows a conditional agreement from February 2020, comes with a value of A$79.5 million ($59 million) to be realised predominantly in GR Engineering’s 2022 financial year.

In addition, Abra Mining has also awarded GR Engineering an EPC contract to relocate, refurbish and commission the Abra Mining-owned Higginsville paste plant. The value of this contract is a further A$10 million.

Geoff Jones, Managing Director, said: “GR Engineering looks forward to continuing its solid working relationship with the Abra Mining team on the delivery of the project and supporting Abra Mining as it becomes the next Australian base metals producer.”

GR Engineering wins Mt Ida EPC contract from Aurenne Alt Resources

GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Aurenne Alt Resources Pty Ltd in relation to the Mt Ida gold project in Western Australia.

Mt Ida, which Aurenne inherited with the acquisition of Alt Resources last year, is in the eastern goldfields of the state.

GR Engineering said the contract sum is approximately A$73 million ($54 million) and work is expected to start immediately.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have been awarded the EPC contract by Aurenne and we look forward to working collaboratively with the Aurenne team. This project further reinforces GR Engineering’s reputation as the leading gold EPC contractor in Australia.”

Alt Resources previously outlined the need for a 750,000 t/y processing facility at Mt Ida in a 2020 feasibility study prior to being acquired by Aurenne.

GR Engineering to help double processing capacity at NSR’s Thunderbox

GR Engineering Services says it has executed an engineering, procurement and construction (EPC) contract with Northern Star Resources in relation to the Thunderbox 6 Mt/y expansion project in Western Australia.

Located 45 km south of Leinster, the Thunderbox operations currently have a 3 Mt/y processing capacity. The asset was owned by Saracen Mineral Holdings prior to a merger with Northern Star.

The works will involve the design, engineering, procurement, construction and commissioning of the project, with the contract sum amounting to A$101 million ($74.3 million) and work is expected to start immediately.

GR Engineering has carried out several projects on the Thunderbox operations, including EPC work on the Thunderbox paste plant work, which has seen a new 150 cu.m paste backfill plant built.

Commenting on the recent award, Geoff Jones, GR Engineering Managing Director, said: “GR Engineering is excited to continue working with Northern Star, one of the world’s leading gold producers, to safely deliver the Thunderbox Expansion project. We have worked with the Northern Star team over many years and see this award as a strong endorsement of our proven EPC delivery capability.”

On award of Northern Star’s largest infrastructure project to date, Northern Star’s General Manager Processing, Simon Tyrrell, said: “The Thunderbox expansion increases the operation’s hard-rock processing capacity to 6 Mt/y from the current 3 Mt/y, and decreases processing costs as outlined in the 2021 Investor Day Presentation. Northern Star is pleased to be working with GR Engineering again, a local company with vast project delivery experience in the Australian mining industry.”

In this same presentation, the company said the processing capacity boost would involve the addition of a new 18 MW mill and classification circuit; new leach tanks, elution and gold room upgrades; and new tailing thickener and tailings pumping. The plant would be designed for 100% fresh ore, NSR said.

GR Engineering to tackle surface infrastructure for Tanami Expansion 2

GR Engineering Services Ltd has executed a subcontractor agreement with RUC Cementation Mining Contractors Pty Ltd in relation to work on Newmont’s Tanami gold mine in the Northern Territory of Australia.

RUC has been engaged by Newmont under a head contract to complete certain construction works for the Tanami Expansion 2 project. Included within this is shaft lining, equipment and headframe construction.

The scope of work for which GR Engineering is responsible comprises the construction and commissioning of the temporary and permanent works associated with the surface infrastructure.

Based on the current budget for the scope of work, it is anticipated that revenue from the subcontractor agreement will be approximately A$68 million ($51 million), GR Engineering said. Work is expected to be completed by April 2023.

Back in November, the two companies signed a “teaming agreement” related to the project.

Geoff Jones, Managing Director of GR Engineering, said: “GR Engineering is pleased to have executed this first subcontractor agreement with RUC and we look forward to working with RUC to deliver safe and successful outcomes for Newmont and on other future projects. GR Engineering continues to build its pipeline of work for financial year 2022 and financial year 2023.”

The Tanami Expansion 2 project is expected to increase the annual capacity of the processing site to 3.5 Mt/y, from 2.6 Mt/y, and extend the life of the mine beyond 2040.